1. In July 1995 Oftel published a statement on "Effective Competition: A Framework for Action", which included a chapter dealing with provisions on anti-competitive practices. Today's statement takes the consultative process on this issue further by setting out in more detail the content of Oftel's proposals for a new licence condition prohibiting anti-competitive practices, and adding for the first time details of the current licence conditions which might be deleted upon introduction of the proposed anti-competitive practices condition, a draft of the guidelines to be associated with that condition and a proposed timetable for introducing the condition into all significant individual telecommunications licences in the UK.
2. Section 1 of this statement explains why Oftel believes these changes are necessary, and sets the proposals in regulatory context and in the context of market developments. Section 2 gives details of the proposed licence condition and of Oftel's proposal, subject to consultation, to delete 17 conditions from BT's licence and to review 11 further conditions. An explanation of the practical effects of the proposals, and of Oftel's intention to introduce the condition into all significant individual telecommunications licences, are also set out in this part of the statement.
3. Section 3 of the statement introduces the fair trading guidelines which Oftel would propose to apply when considering issues under the proposed condition. It also sets out Oftel's plans to introduce a casework audit system, and other developments in the procedures of its Licence Enforcement and Fair Trading Branch to ensure transparency when handling complaints and conducting investigations. This part of the statement also explains why Oftel does not consider the alternative proposal put forward by BT (known as "Cease and Desist") to be an effective alternative.
4. The text of the condition is set out at Annex A. Annex B lists the conditions which the Director General proposes to delete upon introduction of the proposed condition on anti-competitive practices, and conditions which the Director General proposes to review. Annex C sets out a timetable for the introduction of the new condition into all other significant individual Telecommunications Act licences. Annex D contains draft guidelines relating to the application of the proposed new condition, and to Conditions 16B, 17B&C, 20B.15 and 24F of BT's licence.
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